Cadbury: Losing brand value after acquisition by Kraft?

Published: January 2013 · Publisher: MarketLine

Kraft’s CEO, Irene Rosenfeld announced that the company wanted to broaden its position within the confectionery industry as a global leader. In 2010 Kraft’s offer of $19.5bn (L11.5bn) was accepted, causing uproar in Britain. This case study

Kraft’s CEO, Irene Rosenfeld announced that the company wanted to broaden its position within the confectionery industry as a global leader. In 2010 Kraft’s offer of $19.5bn (L11.5bn) was accepted, causing uproar in Britain. This case study examines the affects the acquisition has had on Cadbury’s brand name by using examples of established and emerging markets.

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Highlights

In 2012 Kraft confirmed that the UK chocolate firm Cadbury generated sales of L257m ($400m) since the takeover. The CEO of the company confirmed that the strong performance helped the company meet its synergy cost earlier than expected.
Kraft CEO, Irene Rosenfeld said that the company would be spending heavily in countries such as India and China with the aim that certain countries will generate revenues of around $1bn.
Concerns remain are that Kraft and Cadbury are two very different entities and it will therefore take some time for the companies to combine and operate as one.

Your key questions answered

* Has Cadbury lost brand value after acquisition by Kraft?
* Has Cadbury enjoyed success in emerging markets?
* What difficulties has the acquisition caused for Cadbury?